Investors hopes for a short war are renewed by reports of U.S. troops' proximity to the capital city
April 2, 2003: 9:39 AM EST
NEW YORK (CNN/Money) - U.S. stocks rallied strongly at the open Wednesday, with investors continuing a buying streak from the previous session, as news that U.S. troops were within reach of Baghdad increased hopes of a short war.
Around 9:35 a.m. ET, the Dow Jones industrial average (up 154.48 to 8224.34, Charts), the Standard & Poor's 500 (up 16.50 to 874.98, Charts) index and the Nasdaq composite (up 32.13 to 1380.43, Charts) all registered strong gains.
News that U.S. forces advanced toward Baghdad, with ground troops battling Republican Guard forces along the way, lifted investors' spirits. Stocks have been hit in recent days by talk that troops had been coming up against more resistance than expected from the Iraqis, instilling fear of a long war that could hurt an already cloudy U.S. economy.
Stocks also reacted positively to reports that a U.S. prisoner of war has been rescued and would be heading safely back to the United States. (For full war coverage from CNN.com, click here).
After a weak reading on manufacturing activity Tuesday, investors will also look to indications of economic health in a report on factory orders in February at 10 a.m. ET. Economists surveyed by Briefing.com expect they slipped 0.7 percent after rising 1.5 percent in January.
In corporate news, electronics retailer Circuit City Stores (CC: up $0.16 to $5.30, Research, Estimates) reported a sharply lower fourth-quarter profit of 36 cents per share, down from 67 cents in the year-earlier period and in-line with analysts' average estimate.
Treasury prices fell in morning trading, with the benchmark 10-year note down 27/32, yielding 3.91 percent, which was up from 3.81 percent Tuesday.
Brent oil prices slipped in morning trading, dropping 73 cents a barrel to $25.02 in London. Gold for June delivery slid $4.50 an ounce in New York, hovering at $330.70.
Stocks in Asia rallied overnight, while issues in Europe traded higher at midday. The dollar gained ground against the yen and the euro .
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